First, it’s important to understand what a seller’s market is. A Seller’s Market is when many buyers compete for a property because of low inventory, particularly properties priced well and in move-in-ready condition. It’s not rare for homes like those to attract bidding wars, but in a seller’s market, it’s drastically more competitive. When this happens, the house is likely to sell for more than what it’s priced at, but for many sellers, there’s more than just the increase in price that influences their decision when accepting an offer.
If you’re a buyer in 2022, you will certainly be up against other offers from motivated buyers such as yourself. So, for this blog, we’ll be giving you 30 great tips on how you could stand out above the rest, and write a winning offer based on our extensive research and experience.
- Submit your mortgage pre-approval from a reputable, local lender – Getting prequalified before your home search will make for a much smoother offer writing process for you and your agent, have your current bank statements as well as your pre-qualification letter ready to go once you start looking for your home.
- Even better, work with a local lender who can deliver your loan commitment in two weeks or less – Your agent can usually recommend a lender who is able to get your loan funded promptly, often sellers lean towards accepting offers with shorter close windows and you’ll want to make sure your financials are free and clear and your loan funded in time for that tight turnaround.
- Ask your mortgage lender to email and call the listing agent on your behalf when you submit your offer
- Partner with a realtor who has a proven track record in this year’s market. It goes without saying that each of these items is best taken care of and strategized by a seasoned professional. Buying a home is one of the biggest and most important purchases a person may make in their lifetime, with this immense responsibility it is important to have a licensed expert as your co-pilot
- If your finances allow, use a down payment amount of at least 20%-25%.
- Consider whether you really need to include an appraisal contingency in your offer to purchase. This contingency in a seller’s market should be discussed with your agent. It will make for a smoother close to shorten or lessen any contingencies and this becomes desirable to sellers because it will ensure a quick and easy close.
- If possible, don’t make your offer contingent on the sale of your current home.
- As much as possible, shorten each contingency deadline (financing, inspection, etc.)
- Write a personal letter about why you love the home for your agent to include in the offer presentation
- Write your offer before showings are allowed
- Make the seller’s move easier by allowing the seller to rent back the property
- Offer to close quickly